What Is a Bridge-to-DSCR Loan?
A bridge-to-DSCR loan is a hybrid product that combines a short-term bridge or rehab loan with a built-in conversion to permanent DSCR financing. You close once, complete your renovations, lease the property, and the loan automatically converts from the bridge phase to a 30-year DSCR term — no second closing, no second set of fees, no requalification.
This is the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) in a single loan product. Traditional BRRRR requires two separate transactions. Bridge-to-DSCR eliminates the second transaction.
The savings: A typical DSCR refinance costs $5,000-$10,000 in closing costs plus a new appraisal. Bridge-to-DSCR eliminates those costs entirely because the conversion is built into the original loan terms.
Who Bridge-to-DSCR Is For
- BRRRR investors who want to avoid double closings
- Investors acquiring properties that need light to moderate rehab
- Portfolio builders who want to streamline acquisition-to-rental
- Experienced investors with a clear rent-ready renovation plan
Key Features
Bridge phase: 12-18 months, interest-only, rehab draws included. DSCR phase: 30-year term, fixed or ARM, standard DSCR qualification. Single closing with one set of fees. Credit scores from 660+. Down payments from 15-25% of total cost. Property must meet DSCR requirements (typically 1.0+) before conversion.